Motilal Oswal recommends purchasing HCL Technologies at a target price of ₹2000.

About Hcl Technology — 

HCL Technologies is a global IT services company known for its innovative solutions and customer-centric approach. It offers software development, IT infrastructure, digital transformation, and engineering services across various industries. Its strategic acquisitions and innovation drive its expansion.

HCL Technologies is focussing on leveraging AI, digital engineering, and cybersecurity to drive future growth.

HCL Technologies is focussing on growth in data, AI, digital engineering, and cybersecurity. The company sees potential in enterprise business applications and cloud-native solutions. The engineering, research, and development market is expected to reach USD 170 billion by 2027, growing 8-9% annually. HCL’s full-stack AI solutions, powered by AI Foundry and AI Force, are key to its growth strategy. The company’s strategic partnership with SAP offers significant growth opportunities. HCL’s integrated go-to-market strategy caters to various industries, positioning it as a leader in IT sector innovation.

HCL Technologies is poised to surpass its competitors with robust growth and enhanced valuations.

HCL Technologies is positioned to outperform its peers in terms of growth, backed by significant improvements in its free cash flow (FCF) metrics. These improvements have brought HCLT’s financials in line with industry giants like TCS and Infosys, further strengthening its market position. Given its robust performance and strategic initiatives, HCLT deserves a valuation premium over Infosys.

The company’s valuation is currently pegged at a target multiple of 27x, reflecting a ~10% premium to Infosys. Analysts maintain a bullish stance on HCLT, reiterating a “BUY” recommendation with a revised target price (TP) of INR 2,000, based on 27x Sep’26E EPS. As the company continues to demonstrate strong growth prospects and competitive financial metrics, it remains a top pick for investors looking for long-term value in the IT sector.

Disclaimer: This blog post discusses the risks associated with investing in the stock market and emphasizes the importance of conducting thorough research and seeking professional advice. It is not intended as investment advice and should not be relied upon for making investment decisions. The article serves as a general information resource and highlights the need for careful consideration and planning when investing.